Credit Cards and You
What to know about credit cards and how to manage them.
The Basic of Credit
What is credit? Credit is basically someone's credibility or trustworthiness. A credit score is an accurate representation of someone's ability to pay for something at any given time.
What are the forms of credit? i.e student loans, credit cards, etc. Mortgages and auto loans are considered forms of credit because a consumer will most likely have to borrow money to pay for them, thus factoring in all the aspects of credit. In this case they will go to a lender for money.
What costs and benefits are associated with credit? -Fees and penalties with failing to pay costs on time and some cards already come with high interest rates as is. Certain rewards for good credit scores and creditworthiness cash back. A credit bureau company that collects information from various sources and provides consumer credit information on individual consumers.
What determines if someone gets credit and how much they get?
What you need to know about credit cards
Questions to answer:
What is a credit card? A credit card is a piece of plastic that takes money from a bank to help you pay for goods and services. Most credit cards have a credit limit and annual fee.
Where can you use credit cards? You can use a credit card at any establishment that accepts them.
What are the benefits and costs of using credit cards? A consumer can use a credit card to purchase something at a moment's notice. On the other hand, credit cards are susceptible to debt and can sometimes be the cause of identity theft or fraud. Penalty fees are also common as well as the interest rate from the bank. An Over the limit fee is when a user goes over the credit's spending limit.
Being a Smart Consumer
In this section, you should discuss tips for using credit wisely. (i.e. advice you would give someone when using credit cards).
Tips to using a credit card:
- Separate the wants from the needs. Everybody would like a new coat but sometimes you just can't fit it in the budget. Know what you are buying and why.
- Make sure your credit card will have some sort of coverage to protect you if your new purchases go missing or are broken. Levels of protection do vary though, so check the small print.
Citi Thank You Preferred Card
- Citi Thank you Preferred Card
-No Annual Rate
-After 7 months APR starts at 14.24%
-While there are a lot of redemption options for ThankYou points, many of them don’t offer the average point value of 1 cent. Cash redemption yields a low 0.5 cents per point. ThankYou Points can often be used for gift cards.
Disover It Card
- Discover It Card
-No annual rate
-After 6 months 10.99% is the starting APR.
-There is a waiver for the first late fee and no penalty APR. The only real downside is the spending limit is typically set at $2,000.